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Starbucks to Enter Ready-To-Drink Coffee Category in Europe with Arla Foods

Press Release   •   Jan 21, 2010 10:30 CET

Starbucks has announced today that it will enter the ready-to-drink (RTD) coffee category in Europe with Arla Foods amba as its strategic partner. Arla Foods will manufacture, distribute and market Starbucks premium milk-based RTD coffee beverages for the European market.

Starbucks is looking to increase its activities in Europe and make its first entry into the EUR368 million European RTD coffee category.

Starbucks has chosen Arla Foods as its licensed partner to manufacture, distribute and market the premium ice coffee products for supermarkets, convenience stores as well as Starbucks’ own coffee shops across Europe. As one of the largest dairy companies in Europe, Arla Foods provides a highly developed distribution network for RTD products on key markets in Europe.

”Our success in bringing ready-to-drink coffee products to consumers in North America and Asia demonstrates the global potential of the business and we are proud to join with Arla Foods to bring our premium RTD beverages to consumers in Europe,” says Rich DePencier, vice president, Starbucks Global Consumer Products International.

Arla Foods’ subsidiary Cocio Chokolademælk A/S will manage the majority of the licensed production.

”We are delighted to be entering into this partnership, which in many ways is a breakthrough for Cocio on the European market. Starbucks is one of the world’s largest coffee brands, and we will be working in a growing RTD category with premium, value-added products. The corporate cultures of Starbucks and Arla complement one another and the partnership is a perfect match with Cocio’s and Arla’s strategy of adding value to our milk within the flavoured milk category,” says CEO of Cocio Chokolademælk A/S, Peter Giørtz-Carlsen.

The licensed production for Starbucks is expected to be launched within the next few months at Cocio’s production site in Esbjerg, Denmark and at Arla Foods’ dairy in Esbjerg, Denmark. Cocio has recently invested in increased capacity, so the company is ready to take on additional production without further investments.

Information about the production volume as well as specific product details will be announced in due course.

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